Question 3 (15 marks)
Question 3 a) What is the desirable level of GDP growth, inflation rate and unemployment rate for Australia? Furthermore, what is the actual level of the current GDP growth, inflation rate and unemployment rate according to the latest government’s release. Fill in the blanks. (3 marks)
[Answer here]
| Desirable level | Current Actual level | |
| GDP annual Growth rate (%) | ||
| Unemployment rate (%) | ||
| Inflation rate (%) |
Question 3 b) What is the key economic problem Australia is currently facing and how does/did RBA respond to it (i.e. what type of macroeconomic policy?). How does this policy affect the Aggregate Demand (AD) components and affect the AD, SAS and/or LAS curve in the AD/AS Model? (7 marks)
[Answer here]
| Q 3 b)
Key economic problem is: RBA policy responds by what type of policy: Monetary or Fiscal Policy; Expansionary or contractionary policy. (Type the correct answer) AD curve: (shift left / remain unchanged / right) (Type the correct answer) SAS curve: (shift left / remain unchanged / right) (Type the correct answer) LAS curve: (shift left / remain unchanged / right) (Type the correct answer) |
Question 3 c) How does each of the following transactions affect the Current Account balance or the Capital and Financial Account balance and the Australian Dollar (AUD).
Q3 c (i) Australian imports more cars from Germany. (1 mark or 0 mark)
Q3 c (ii) Australian exports more wheat to China. (1 mark or 0 mark)
Q3 c (iii) An US farmer purchases an Australian farm. (1 mark or 0 mark)
Q3 c (iv) An Australian company purchases a gold mine in Brazil. (1 mark or 0 mark)
Q3 c (v) Australia donates $8 million to Cambodia due to the recent disaster. (1 mark or 0 mark)
[Answer here]
| Q3c i)
Current Account or Capital Account; AUD would appreciate or depreciate (Type the correct answer) Q3c ii) Current Account or Capital Account; AUD would appreciate or depreciate (Type the correct answer) Q3c iii) Q3c iv) Q3c v) |
Question 3a:
| Desirable level | Current Actual level |
|---|---|
| GDP annual Growth rate (%) | [Answer] |
| Unemployment rate (%) | [Answer] |
| Inflation rate (%) | [Answer] |
Question 3b:
Key economic problem is: [Answer]
RBA policy responds by what type of policy: [Monetary or Fiscal Policy; Expansionary or contractionary policy]
Monetary policy affects the following AD components: [Answer]
AD curve: [shift left / remain unchanged / right]
SAS curve: [shift left / remain unchanged / right]
LAS curve: [shift left / remain unchanged / right]
Question 3c:
Q3c i) Australian imports more cars from Germany: Current Account; AUD would [appreciate or depreciate]
Q3c ii) Australian exports more wheat to China: Current Account; AUD would [appreciate or depreciate]
Q3c iii) An US farmer purchases an Australian farm: Capital Account; AUD would [appreciate or depreciate]
Q3c iv) An Australian company purchases a gold mine in Brazil: Capital Account; AUD would [appreciate or depreciate]
Q3c v) Australia donates $8 million to Cambodia due to the recent disaster: Current Account; AUD would [appreciate or depreciate]
Remember to fill in the answers for the blank spaces and provide the appropriate choices for each scenario. If you have any further questions or need more detailed explanations, feel free to ask.
As a renowned provider of the best writing services, we have selected unique features which we offer to our customers as their guarantees that will make your user experience stress-free.
Unlike other companies, our money-back guarantee ensures the safety of our customers' money. For whatever reason, the customer may request a refund; our support team assesses the ground on which the refund is requested and processes it instantly. However, our customers are lucky as they have the least chances to experience this as we are always prepared to serve you with the best.
Plagiarism is the worst academic offense that is highly punishable by all educational institutions. It's for this reason that Peachy Tutors does not condone any plagiarism. We use advanced plagiarism detection software that ensures there are no chances of similarity on your papers.
Sometimes your professor may be a little bit stubborn and needs some changes made on your paper, or you might need some customization done. All at your service, we will work on your revision till you are satisfied with the quality of work. All for Free!
We take our client's confidentiality as our highest priority; thus, we never share our client's information with third parties. Our company uses the standard encryption technology to store data and only uses trusted payment gateways.
Anytime you order your paper with us, be assured of the paper quality. Our tutors are highly skilled in researching and writing quality content that is relevant to the paper instructions and presented professionally. This makes us the best in the industry as our tutors can handle any type of paper despite its complexity.
Recent Comments